Several months ago, location-based service LocalResponse ^[1] started offering businesses the ability to send real-time messages and offers to customers based on where they checked in on Foursquare, Facebook, Loopt, and other social media networks. Months later, the targeting is paying off with significant engagement from consumers, who are responding to relevant and timely offers and discounts at impressive rates.

According to the company, a number of retailers and manufacturers have used LocalResponse and enjoyed more followers, retweets, and incredibly high click-through rates between 15 to 25 percent. To get an idea of how high this is, banner ads typically have click-through rates of only about 0.1 percent.

Initially, the company’s services seemed borderline stalkerish, invasive, and potentially overwhelming, but so far, the high click-through rates suggest that users want hyperlocalized, relevant, and valuable deals. But just in case, LocalResponse prevents smothering its customers by limiting one message per day from advertisers and one offer per week from businesses or brands.

Read more from GigaOM ^[2].